Tag Archives: equipment

Small Business Loans- A Must Read

July 16, 2020   Fast Loan

If you happen to just start a small business enterprise or want to expand your existing business to fully take the advantage of positive opportunities, your business enterprise will need the right kind of financing just at the right moment in order to develop and succeed.

Small Business Loans can immensely help small business houses, which essentially form the backbone of the economy of a country, thrive. Many institutional partners or lenders can get associated with a federal authority in order to provide the right kinds of small business loans for varied types of industries that have varied interest areas.

Let us first discuss the eligibility of getting a small business loan. Repayment ability of the borrower, as evident from the flow of cash in the entire business is the most primary consideration. However, evidence of good and honest character, good management capability, sound collateral, and the business house owner’s contribution to equity are also very important factors considered before loan approval.

Usually, owners of business houses with more than a specified ownership will need to provide a personal guarantee of loan repayment. This is mainly because a certain percentage of loans disbursed become an unsecured business loan.

Varied types of small businesses can apply for financial assistance in the form of small business loans. However, there are certain conditions that must be fulfilled:

All applicant business houses must demonstrate the profit motive;

All applicant business houses must be doing, or at least plan to operate in the United States

All applicant business houses must show good owner equity in order to invest; There are several types of small business loans that enable small business houses acquire working capital.

One assistance program can provide for financing on a fixed rate on a long-term basis to facilitate acquisition of fixed assets (for example equipment or real estate) for modernization or expansion. It is specifically aimed at small business houses.

One assistance program can provide for loans that are short-term for so that the business houses can purchase supplies, furniture, equipment or inventory. Such programs are specifically designed for all kinds of small business houses that need financing on a small-scale and also assistance on the technical front for expansion or start-up, and the loan is given through specifically named intermediary lenders (for example, nonprofit organizations that have experience in technical assistance and lending).

Another loan program provides for loans on low-interest basis to renters, all size business houses, homeowners, and many private non-profit organizations to replace or repair personal property, equipment or machinery that was destroyed because of natural calamity.

This is hence, established that small business loans can play an important role in improving the overall business scenario of the business houses.

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When and How to Get Construction Equipment Leasing

June 24, 2020   Auto Loans

Construction Equipment Leasing is a type of leasing arrangement where a small business owner (like you) would like to get Construction Equipment but at a lower cost than when you buy the Construction Equipment yourself. It falls under the broader category of Equipment Leasing which means that the equipment you want to lease is probably very expensive (and Construction Equipment are extremely expensive) but you cannot rationalize buying the equipment because you might need the equipment only for the short-term or you lack the capital for outright purchases.

The usual lease period for Construction Equipment Leasing starts at the 24-month term and could last as long as a 48-month term. Usually, Construction Equipment Leasing will not require you to make a hefty down payment though you may be required to give a security deposit of some amount. This allows you to use more of your cash flow for your business needs and to save up. However, for long-term purposes, it is not advisable to use the Construction Equipment Leasing option – rather, a cheaper option for the long-term loan option is bank financing itself. Construction Equipment Leasing is ideal for short-term needs only.

Construction Equipment Leasing may fall into three main categories – namely the capital lease, the operating lease, or the skip lease. The capital lease (also called a finance lease) acts like a regular loan and will last about as long as the actual lifespan of the Construction Equipment. If the Construction Equipment is in good working condition at the end of this lease term, the capital lease allows you to take advantage of the stipulation to buy the same Construction Equipment you have been using for your company. The operating lease (also called a true lease) lasts shorter than the life span of the Construction Equipment and will usually use up less of your business cash flow. You may find payments for the operating lease to be tax deductible (but you’ll have to check the agreement you are entering if this applies to you.) A skip lease is ideal for any seasonal business where income usually flows in only during specific months in the year (rather than year-round like other businesses.)

When it comes to Construction Equipment Leasing, you may get yourself a better deal if you go straight to the Construction Equipment manufacturers. The larger business finance institutions are also known to do this more commonly than the smaller ones. The best way to find this option is to go online and look for any links to “leasing options.” As with any financial transaction, do not snatch up the first offer you get. Rather, try to look around the market and see if there are any Construction Equipment Leasing companies that can give you a better deal under the same leasing terms. It is equally important to find out if you are in for any tax breaks if you pursue Construction Equipment Leasing for your company. This can be confirmed by your company accountant.

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